Are there any reasons to question the validity of the CAPM?Explain.

Q: What exactly does the word "noncontrolling interest" imply in this context?

A: Non-controlling Interest: Non-controlling interest is the equity not attributable, directly or…

Q: Explain how materiality differs for failure to follow GAAP and for lack of independence.

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Differentiate the common misconceptions and controversies on the prohibition of Riba.

A: Riba means excess, addition, growth or augmentation. It is divided in to two categories…

Q: Why is it necessary to obtain corroborating evidence for inquiry and for observation?

A:

Q: Why or what are the reason or reasons that would cause the trial balance to be considered as…

A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…

Q: What analytical procedures might be informative regarding the existence assertion?

A: The existence of assertion is the assertion that liabilities, assets and shareholders equity…

Q: Why is a preemptive right important?

A: Preemptive rights means the rights to  be offered to purchase a property before it is offered to…

Q: What is a reasonableness test?

A: Reasonableness tests is an analytical procedure used to examine the validity of the accounting…

Q: What are the two primary ways to conduct substantive tests? Explain how the tests are different.

A: Substantive testing: Substantive testing is the last phase of auditing process where an auditor…

Q: So why would we not use standard deduction?

A: Standard deduction is the term which is used in the accounting and it is the portion of income that…

Q: Should VAS be completely replaced by IFRS? Why/ Why not?

A: IFRS stands for International Financial Standards where as VAS stands for Vietnamese Accounting…

Q: Which of the following statements is not correct?

A: Leave monetization is actually the leave encashment which means the if there is any earned leaves…

Q: Are the differences between IFRS and U.S. GAAP significant? Explain

A: IFRS:-These are the International Financial Reporting Standards which followed by the companies,…

Q: Which one of the following statements is INCORRECT?

A: Statement (2) is correct as under FIFO method, the earlier goods purchased would be comparatively…

Q: In what ways can independent verification occur?

A: Independent Verification of business activities of a company can be done various ways. Some of them…

Q: Explain Charges and Liens?

A: The question is based on the concept of legal terms used to grant security against loan or debt.

Q: What is the difference between the Codification and the Codification Research System?

A: FASB: The FASB is an independent, designated and non-profit organization established by SEC for…

Q: Which of the following statements is NOT correct?

A: The yield of the bond refers to the return that investors will realize on investment when the…

Q: hat are the Sarbanes-Oxley Act and GAAP?

A: In order to reduce the fraud in corporations while recording financial transitions or preparing…

Q: What are the types of situations that result in troubleddebt?

A: Troubled debts can result in two different situations, which are as…

Q: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: What are the key features of the objection and appeal process against the Commissioner’s decision?

A: When making an objection, the following procedure should be followed: The Income Tax Act's Sections…

Q: Does the MM theory appear to be correct according to either empirical research or observations…

A: The question is based on the concept of Modigliani Miller (MM) approach of capital structure and…

Q: What is USALI? Is it required under GAAP? Why would you use it?

A: USALI is Uniform System of Accounts for the lodging industry. The USALI states that all financial…

Q: efine the term materiality and explain why it may be d

A: Materiality is quite important in preparing the financial statement and it is very important to the…

Q: What does a deficiency judgment mean?

A: Deficiency judgement refers as if borrower takes money from a lender and he is  fails to return back…

Q: Explain how a possible conflict between neutrality and prudence could arise and how the conflict…

A: Neutrality and Prudence are two characteristics of reliability of accounting information. Neutrality…

Q: Which of the following is not a recognized approach to standard-setting? A . A rules-based approach

A: Answer:   Recognized approach to standard setting

Q: The Conceptual Framework is not an IFRS.

A: IFRS is an acronym of International Financial Reporting Standards The IFRS provides the standards…

Q: Explain the Nonrecourse clause?

A: A sum of money that an individual or company owes is called liability. It is an obligation between…

Q: What criteria must an instrument meet to be negotiable?

A: Following are the formal requirements that an instrument must meet to be negotiable: Must be in…

Q: What is an evidence which can support a conclusion for the time being but it may be proven…

A: Circumstantial proof is evidence that depends on associate illation to attach it to a conclusion of…

Q: Which of the following is not considered to be an analytical procedure?

A: Answer: Comparisons of financial statements accounts with source documents

Q: Which of the following is not a constraint on the fi nancial statements according to the Conceptual…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Why does the exclusion of the preemptive right ordinarily inconsequential?

A: Preemptive Rights: It is a contractual clause that gives the shareholders right or allows them to…

Q: What is underpricing? Why is it used? What evidence do we have to support the belief that…

A: Underpricing is a common term used in Initial public offering of shares of a private company which…

Q: Describe the term Legitimized disagreement and skepticism?

A: Disagreement means not giving the consent or objecting to something such as a proposal or people's…

Q: How might exclusion clauses be found to be unenforceable?

A: Exclusion clause is defined as the term of contract that looks for restricting or excluding the…

Q: What is an unasserted claim?

A: An unasserted claim or assessment is one in which the affected party or potential claimant has not…

Q: Has the validity of the CAPM been confirmed through empirical tests?

A: Introduction: The model of capital asset pricing is a formula that determines the relation between…

Q: Explain how a possible conflict between neutrality and prudence could arise and how the conflict…

A: Neutrality and Prudence are two characteristics of reliability of accounting information. Neutrality…